Owner-occupied premises
Property used by the borrower’s business.
Finance connected with commercial property
Commercial finance for business and investment property
Buying, refinancing or raising finance against commercial property involves more than the building alone. Anderson Reed Financial Services can help you outline the property, business or tenant position, funding purpose, security and repayment plan before identifying an appropriate next conversation.
The route can differ depending on whether your business will occupy the premises or the property will be let to commercial tenants.
Commercial Finance
Commercial property borrowing starts with the purpose
Commercial Finance is a broad phrase. On this page, the principal focus is finance secured on or used to acquire commercial property. That may include premises occupied by the borrower’s own business or property held as an investment and let to commercial tenants.
The appropriate route can depend on the borrower or legal entity, property type and use, purchase or refinance purpose, available contribution or equity, business performance, rental or trading income, leases, tenant profile, security and repayment plan.
Commercial investment property
Property principally let to commercial tenants.
Property containing both commercial and residential accommodation may need a Semi-Commercial Finance conversation rather than being treated as wholly commercial.
Direct Broker Introduction
Speak directly to a commercial finance specialist
Commercial borrowing is evaluated on tailored parameters — not standard automated scorecards. Speak directly with whole-of-market specialists Scott Davis and Nigel Kent at Anderson Reed to discuss borrowing capacity, indicative LTVs, and appropriate lender appetite before submitting applications.
Whole-of-market specialist panel
Trading businesses & SPV investors
Zero upfront appraisal fees
Lending criteria matrix
Commercial mortgage lending criteria at a glance
Commercial mortgage underwriting differs fundamentally between owner-occupied business premises (where borrowing is supported by trading operational cash flow) and commercial investment properties (where rental income and tenant covenants are primary). Below is an indicative criteria summary across our specialist commercial lending panel.
| Criteria parameter | Owner-occupied premises | Commercial investment property |
|---|---|---|
| Maximum Loan-to-Value (LTV) | Up to 75% LTV (up to 100% possible with additional equitable charges or security) | Up to 65% – 70% LTV (up to 75% for prime covenants and long WAULT leases) |
| Loan size range | £100,000 to £50,000,000+ | £150,000 to £50,000,000+ |
| Typical loan terms | 5 to 30 years | 5 to 25 years |
| Repayment structures | Capital & Interest (full repayment); initial 1–3 year interest-only options available for expanding businesses | Interest-only (1–5 years rolling or full term) or Capital & Interest repayment |
| Affordability & serviceability | Assessed against business EBITDA / net profit. Typically requires 1.25x – 1.50x Debt Service Coverage Ratio (DSCR) | Assessed against passing rental income. Typically requires 125% – 140% Interest Cover Ratio (ICR) stressed at lender reference rate |
| Trading & tenancy track record | Typically 2 to 3 years filed accounts and current management figures (MBOs, franchises, or strong industry backgrounds considered on merit) | Tenant financial covenant strength, historical payment records, and unexpired lease term (WAULT) |
| Eligible borrower entities | UK Ltd Companies, LLPs, Sole Traders, Partnerships, SIPP & SSAS Pension Trusts | Special Purpose Vehicles (SPVs), Ltd Companies, LLPs, Individuals, Offshore & Pension Trusts |
| Security & guarantees | First legal charge on commercial freehold or long leasehold title. Director personal guarantees (PGs) typically required | First legal charge on commercial property. Rent assignment & debentures. Director PGs commonly requested |
Important note: All figures and parameters represent indicative terms across our specialist commercial lending panel and do not constitute an offer, formal quote, or guarantee of lending. Final terms depend on property valuation, tenant profile, accounts, legal title, and full lender underwriting. Commercial loans are subject to status and eligibility. Property or other assets used as security may be at risk if agreed payments are not maintained.
Interactive criteria checker
Commercial Borrowing & Criteria Checker
Select your intended commercial property purpose, indicative loan requirement, and available equity to explore indicative lender appetite, expected LTV boundaries, and required underwriting documents. Zero personal data required and zero impact on your credit score.
Will your trading business occupy the building, or will it be let to commercial tenants?
Select your anticipated borrowing range across our specialist panel.
What proportion of property value or purchase price will you contribute?
Indicative Assessment
Active Lender Panel
Owner-Occupied Commercial Facility
Loan Size Bracket:
Lending Panel Focus:
Max Indicative LTV:
Repayment Structure:
Primary Evidence:
Initial Document Checklist
- Last 2–3 years filed accounts & latest management accounts
- 6 months recent business bank statements & asset/liability summary
- Current tenancy schedule with passing rents and review dates
- Copies of commercial leases, break clauses, and tenant covenant info
- Audited corporate group structure or comprehensive investor portfolio schedule (£2m+)
- Current year-to-date management figures and 12-month business or rental cash flow projection (£500k–£2m)
- Proof of deposit funds & latest personal tax calculations / SA302s for proprietors (£100k–£500k)
- Property details, valuation estimate & borrowing structure requirements
Discuss this borrowing profile directly with an adviser:
Real-world transactions
Commercial property finance deal examples
Every commercial property requirement has distinct characteristics across asset type, borrower profile, tenant covenants, and loan terms. Below are illustrative transaction examples reflecting typical structures and outcomes across our lending panel.
Owner-Occupier Purchase
Logistics & Trade
£650,000 Freehold Warehouse Acquisition
Commercial mortgage for trading premises
Property Valuation:
£650,000
Loan Amount:
£455,000 (70% LTV)
Term & Basis:
15-year Capital & Interest
Borrower Profile:
UK Ltd Co (3 yrs trading)
Challenge: An expanding distribution firm was leasing their facility, facing a 35% lease-renewal rent hike. The business identified an adjacent freehold warehouse to purchase but needed a 70% LTV commercial mortgage approved within a strict contractual deadline.
Solution: Anderson Reed presented 3 years of audited trading accounts and EBITDA cashflow projections to a specialist commercial challenger bank. The lender approved the £455,000 loan with serviceability evidenced by a 1.42x Debt Service Coverage Ratio (DSCR).
Outcome: The company secured the freehold property, fixed its long-term occupancy overheads, and began building equity value in the company balance sheet rather than paying rising rent to a landlord.
Commercial Investment
Trade Counter / Offices
£1,400,000 Multi-Let Refinance & Equity Release
Capital release for property portfolio growth
Property Valuation:
£1,400,000
Loan Amount:
£910,000 (65% LTV)
Term & Basis:
5-year Interest-Only
Borrower Profile:
Property Investment SPV
Challenge: An experienced commercial investor held a multi-unit trade park financed with an expiring short-term bridging facility. The investor wanted to refinance onto a competitive long-term facility while releasing capital to fund their next commercial purchase.
Solution: We structured the proposal around the tenancy schedule: three established commercial tenants generating £98,000 annual passing rent with a 4.5-year weighted unexpired lease term (WAULT). The lender underwrote the facility at 135% ICR coverage.
Outcome: Successfully refinanced out of the bridging debt, decreased monthly interest costs by 40%, and extracted £240,000 in net equity to deploy into subsequent commercial acquisitions.
Healthcare Practice
Medical / Clinic
£380,000 Practice Freehold Purchase
Tenant-to-freeholder acquisition
Property Valuation:
£380,000
Loan Amount:
£285,000 (75% LTV)
Term & Basis:
20-year Capital & Interest
Borrower Profile:
Medical & Dental Partnership
Challenge: Partners in an established high-street clinical practice received a surprise off-market offer from their landlord to purchase the freehold premises, with a 60-day deadline before the property was placed on the open commercial market.
Solution: Leveraging the practice's established 8-year trading stability and steady NHS/private patient fee streams, Anderson Reed approached a commercial banking panel offering 75% LTV on professional premises.
Outcome: Loan approved within 18 days, safeguarding the practice's permanent trading home, avoiding relocation expenses, and adding a prime commercial asset to the partners' wealth structure.
These deal profiles are illustrative examples based on typical commercial finance terms and completed transaction structures. Individual lending terms, pricing, and LTV limits depend on property valuation, borrower covenant, lease terms, and full lender underwriting. Commercial loans are subject to status and eligibility.
Owner-occupied premises
Finance for premises used by your business
An owner-occupied commercial mortgage may be considered when a business is buying or refinancing premises from which it trades. The property provides security, but the business’s ability to support the borrowing is also central to the assessment.
A lender may consider trading history, accounts, management information, a business plan or projections where appropriate, legal structure, directors or partners, existing commitments, deposit or equity, property suitability and how the proposed payments will be met.
Possible purposes
- Purchasing trading premises
- Refinancing an existing commercial mortgage
- Moving to larger or more suitable premises
- Acquiring additional premises for an established operation
- Raising funds against business property for an approved business purpose
- Consolidating or restructuring borrowing where the service and risks are properly assessed
These are examples, not eligibility statements.
Information that may matter
- Business legal structure and ownership
- Trading history and sector
- Filed accounts and recent management information
- Existing borrowing and commitments
- Property type, condition, location and use
- Purchase price, value or proposed refinance amount
- Deposit or equity contribution
- Affordability, serviceability and repayment plan
- Changes expected after the purchase or refinance
- Any personal guarantees or additional security requested
Do not send business bank statements or supporting records through the ordinary public enquiry form.
Commercial investment property
Finance for commercially let property
Commercial investment finance may be considered where a property is bought or refinanced principally to generate rent from one or more commercial tenants. Assessment can include the borrower or investment entity as well as the property, tenancy and income.
A lender may consider the tenant’s financial strength or covenant, lease length, break clauses, passing rent, rent-review terms, repairing and insurance obligations, vacancy or reletting risk, property condition, location, use and marketability. A strong current rent does not remove the need to understand the lease or what happens if the tenant leaves.
Lease and tenant considerations
- Tenant identity and trading position
- Remaining lease term and contractual breaks
- Rent, payment history and review provisions
- Repairing, insurance and service-charge responsibilities
- Expiry, renewal, assignment and subletting provisions
- Vacant possession, partial vacancy or rent-free periods
- Concentration risk where one tenant supplies all income
- Costs and time involved in reletting
- Property suitability for alternative occupiers
Anderson Reed Financial Services does not provide legal interpretation of a lease. The borrower’s solicitor must review title and lease documents.
Property types
Different commercial properties can be assessed differently
Commercial property is not one uniform market. The building, location, condition, use, occupier demand and specialist nature can affect valuation and lender appetite.
- Offices and professional premises
- Retail units and shops
- Industrial, warehouse and trade units
- Owner-occupied workshops or production premises
- Healthcare, leisure or hospitality property where an appropriate route exists
- Multi-unit commercial property
- Specialist-use buildings requiring more detailed assessment
This list illustrates property categories only. It does not confirm that Anderson Reed Financial Services or a lender will support every property, sector or use. Buildings with a residential element may need Semi-Commercial Finance; principally residential letting may point to Buy to Let.
Assessment
The borrower, property and repayment source are considered together
- The borrower or business
- Legal structure, ownership, experience, trading performance, financial commitments, credit position and the people responsible for the borrowing may be relevant.
- The property
- Type, use, condition, tenure, location, value, marketability, environmental considerations, planning position and suitability as security may be assessed.
- The repayment source
- For owner occupation this may focus on business performance and cash flow. For investment property it may include rent, lease and tenant strength. Some cases use more than one source, subject to the lender’s approach.
Security and guarantees
Commercial property is commonly taken as security. A lender may also request personal guarantees, additional property or other security depending on the borrower and proposal. The legal and financial consequences require individual explanation and independent legal advice where appropriate.
Valuation and legal due diligence
Commercial valuation and legal work can be more detailed
A commercial valuation may consider comparable transactions, rent, lease terms, tenant strength, yield evidence, vacant-possession value, property condition, use and marketability. The lender’s valuation is prepared for the lender and may not replace a survey or other professional report commissioned for the buyer.
Legal work can include title, lease, searches, planning and permitted use, access, services, environmental matters, occupational arrangements, guarantees and lender security. Additional reports may be required depending on the property and business.
Freehold and leasehold premises
A business or investor may purchase a freehold, a long leasehold interest or another qualifying interest in commercial premises. Leasehold borrowing can require review of the remaining term, ground rent or service charges, use restrictions, consent requirements and the relationship between the occupational lease and the superior title. Legal representatives and the lender should review the exact title and lease structure.
Costs and risks
Look beyond the interest rate
Commercial property finance can involve lender arrangement fees, advice or broker fees, valuation and specialist-report costs, legal fees, searches, security costs and other transaction charges in addition to interest. Some costs may be payable even if the transaction does not complete.
Variable rates or future reviews can change payments. A business downturn, tenant default, vacancy, property-value change or unexpected building cost can affect the ability to maintain borrowing. Selling or refinancing a specialist commercial property may take longer than expected.
Cost and risk checklist
- Interest basis, review dates and repayment structure
- Lender, advice or broker and administration fees
- Valuation, survey and specialist-report costs
- Separate borrower and lender legal costs
- Security registration and company requirements
- Early repayment, default and enforcement terms
- Lease, tenant and vacancy risk
- Property repair, insurance and compliance obligations
- Personal guarantees or additional security
- Tax and accounting treatment requiring independent advice
Property or other assets used as security may be at risk if the agreed payments or repayment obligations are not maintained.
Regulation and our role
The regulatory position depends on the actual circumstances
Commercial property finance should not automatically be described as regulated or unregulated from the page title. The position can depend on who is borrowing, the security, property use, occupation, business purpose and agreement.
Anderson Reed Financial Services must explain whether it is providing advice, arranging or broking finance, or making an introduction for the relevant service. It must also explain applicable limitations, fees or remuneration and the consumer protections available before the case progresses.
Preparing for a Commercial Finance conversation
Information that may be useful
The first contact only needs a short outline. If the requirement appears to fit the service, Anderson Reed Financial Services can explain which information may be needed and how to provide it appropriately.
- Purchase, refinance or capital-raising purpose
- Borrower or business name, legal structure and ownership
- Business activity and trading history
- Property address, type, use, tenure and occupancy
- Purchase price, estimated value or existing borrowing
- Deposit, equity or other contribution
- Accounts and management information where relevant
- Existing business and property commitments
- Tenant, lease, rent and vacancy details
- Proposed term and repayment basis
- Known credit, title, planning, environmental or property issues
- Transaction timescale and contractual deadline
How the conversation progresses
From property requirement to an appropriate next step
- 1
Outline the purpose
Explain the property, proposed use, borrower or business, amount and timescale.
- 2
Clarify owner occupation or investment
Establish whether the business will occupy the premises, commercial tenants will provide income or another use applies.
- 3
Confirm the service and information required
Anderson Reed Financial Services explains its role and what financial, property, lease or business information may be needed.
- 4
Review the proposed structure
The relevant proposal should explain borrowing, term, repayment method, interest, fees, security, guarantees, conditions and risks.
- 5
Progress valuation and legal work
Lender assessment, valuation, reports, searches, legal due diligence and satisfaction of conditions are separate stages and are not guaranteed by a positive initial conversation.
Illustrative purposes
Commercial requirements can be very different
Owner-occupied purchase
An established business is considering buying the unit from which it intends to trade. The conversation may include accounts, management information, existing commitments, deposit, property use, valuation and how the business will support payments.
Commercial investment refinance
An investor is reviewing borrowing on a let commercial unit. The property, value, borrower, tenant, lease, rent, remaining term and future vacancy or reletting risk may all be relevant.
Mixed-use property
A buyer is considering a building with commercial space and residential accommodation. The proportion, layout, occupation, leases and intended use may point toward Semi-Commercial Finance rather than a wholly commercial route.
These examples are for explanation only and are not advice, lender criteria or an indication that finance will be available.
Explore Specialist Finance services
Property finance
- Bridging and Development Finance
- Commercial Finance
- Semi-Commercial Finance
Business funding
Homeowner and additional borrowing
Frequently asked questions
Commercial Finance questions
What is a commercial mortgage?
It is borrowing secured on commercial property, commonly used for owner-occupied business premises or commercial investment property. Products and assessment methods vary.
What is the difference between owner-occupied and commercial investment finance?
Owner-occupied assessment commonly focuses on the business trading from the premises and its ability to support borrowing. Commercial investment assessment may place greater emphasis on the property, tenant, lease and rent as well as the borrower.
What types of commercial property may be considered?
Offices, retail, industrial, warehouse, trade and other properties may be considered depending on the lender, borrower, use and circumstances. A category appearing on this page does not confirm acceptance.
Is mixed-use property a commercial mortgage?
It may require Semi-Commercial Finance where both commercial and residential elements are material. The structure and use need individual assessment.
How much deposit is required?
Contribution requirements vary with the borrower, property, purpose, valuation, business or rental position and provider. The page does not publish one universal percentage.
How is affordability assessed for owner-occupied premises?
A lender may review accounts, management information, commitments, cash flow, projections where appropriate and the proposed payments. Methods and evidence differ.
How is a commercial investment property assessed?
Assessment may include the borrower, property, value, tenant, covenant, lease, rent, vacancy risk and marketability. The weighting varies by case and lender.
Why does the lease matter?
Lease length, breaks, rent, review provisions, repairing obligations, assignment and tenant terms can affect income, value and marketability. Legal interpretation belongs with the solicitor.
Are personal guarantees always required?
Not always, but they may be requested depending on the borrower, legal entity, security and proposal. Independent legal advice may be required before giving a guarantee.
What costs may apply?
Interest, lender fees, advice or broker fees, valuation, legal work, searches and specialist reports may apply. The actual costs and payment points must be disclosed for the proposal.
Is Commercial Finance regulated?
It can be subject to different regulatory treatment depending on the borrower, property use, security, purpose and agreement. Status and protections must be confirmed for the actual case.
How long does a commercial mortgage take?
Timing depends on the information, lender assessment, property, valuation, reports, legal work and other parties. No fixed completion period should be promised.
Could Bridging Finance be used instead?
A shorter-term route may be considered for some time-sensitive, refurbishment or transition requirements, but costs, security and exit need separate assessment. It is not automatically an alternative to a commercial mortgage.
Does submitting the form create an application?
No. It creates an initial enquiry only. It is not advice, an application, an offer, approval or guarantee of eligibility.
Client reviews
What clients say about Anderson Reed Financial Services
Clear explanations and practical support can help make important decisions easier to approach.
1 / 4
★★★★★
“Cannot thank Scott for all his help support throughout the process of sorting our mortgage. Ours wasn’t a typical ‘let’s just go & get a mortgage’ situation, but Scott’s knowledge & expertise made everything so much easier. Would highly recommend”
★★★★★
“Scott was fantastic for myself and my business partners. Professional throughout and contactable throughout the day. Would recommend his service to anyone!”
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“Cannot thank Scott enough, helped us throughout the entire process and was always available for support! 10/10.”
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“Scott, Held our hand from start to finish with our purchase. Amazing service.”
Commercial Finance
Discuss the property, business or investment requirement
Give Anderson Reed Financial Services a short outline of the commercial property, how it will be used and what you want the finance to achieve. The team can explain what information may be useful and identify an appropriate next conversation.